In what way does land differ from other inputs such as labor and capital?
What will be an ideal response?
Unlike labor and capital, land is in strictly fixed supply. Therefore, its supply is perfectly inelastic.
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All else being equal, if the price of a product decreases, we would expect
A. quantity supplied to increase. B. demand to increase. C. quantity supplied to decrease. D. supply to decrease.
Surpluses will help future generations more than deficits will hurt future generations due to inflation and taxes.
A. True B. False C. Uncertain
There are currently 1,000 firms in a competitive industry. Minimum long-run average cost is $80 and price $100. Explain what will happen to price, profit, and the number of firms in this industry over time.
What will be an ideal response?
An agreement that gives one party the right to buy or sell from or to •- another party a specified quantity of currency at a specified price would be included in which of the following transactions?
a. an option b. a futures contract c. a forward contract d. a swap